Final Policy (effective February 24, 1998): OSCP - 57-602 - Cease Trading Orders - Applications for Partial Revocation to Permit a Security Holder to Establish a Tax Loss

(1) A securityholder may wish to sell securities subject to a cease trading order in order to establish a tax loss.

(2) The Commission is prepared to vary an outstanding cease trading order to permit the disposition of securities subject to the cease trading order if

(a) the Commission is satisfied that a proposed disposition is being made by an applicant securityholder, so far as that securityholder is concerned, solely for thepurpose of that securityholder establishing a tax loss, and

(b) the applicant securityholder provides the purchaser with a copy of the cease trading order and the variation order.

(3) If the disposition is by way of gift, the Commission is of the view that it is not a "trade" within the meaning of section 1(1) of the Act even though it may beviewed as a "disposition" for the purposes of the Income Tax Act (Canada).